World History Archive May 2016 59-69

EN_01212690_0050

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10 livres tournois banknote, issued by the Banque Royale, France, 1720. In 1716, Scottish economist John Law established a bank in France. It was bought by the French government in 1718 and renamed the Banque Royale. Law also founded the Mississippi Company. However, he overvalued its assets, creating a bubble, as more and more people bought shares. shareholders demanded cash payment, leading to a run on the bank and financial chaos in France.

headline World History Archive May 2016 59-69

created date 2016-05-17

credit East News

source Image Asset Management

byline

original transmission reference WHA_067_0050

weight 3,88MB

size 48cm x 31cm by 300dpi

keywords - Show

10, 1716, 1718, 1720, A, ALSO, AND, AS, ASSETS, BANK, BANKNOTE, BANQUE, BOUGHT, BUBBLE, BY, CASH, CHAOS, COMPANY, CREATING, CURRENCY, DEMANDED, ECONOMIST, ESTABLISHED, FINANCIAL, FOUNDED, FRANCE, FRENCH, GOVERNMENT, HE, HOWEVER, IN, ISSUED, IT, ITS, JOHN, LAW, LEADING, LIVRES, MISSISSIPPI, MONEY, MORE, ON, OVERVALUED, PAYMENT, PEOPLE, RENAMED, ROYALE, RUN, SCOTTISH, SHAREHOLDERS, SHARES, THE, TO, TOURNOIS, WAS,